Cash Cattle: Slower Than Expected Movement

Packers continue to shorten their inventory with limited purchases in the cash market, leading to a disappointing trade on Friday.
( Consolidated Beef Producers )

The cash cattle market was disappointing at a $125, and some $200 in the beef, across all regions north and south. Packers continue to shorten their inventory with limited purchases in the cash. With only two packers involved in the cash trade, the market didn’t have enough active buyers for feedyards to push the market higher.

The next 30 days could be the best shot that feeders have to push the cash market until spring demand. The lack of trade on both sides in the cash market may put feeders in a situation to take advantage of a good run in the cash. The next 3-4 weeks will be very telling on how many cattle we move, and where the market will go before spring demand.